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Four consortia vie for Victoria offshore wind grid PPP

Victoria’s Gippsland offshore wind grid operator tender has attracted expressions of interest (EoI) from around four consortia, four sources familiar with the situation said.

The groups include: developer Iberdrola with builder John Holland and Capella Capital; Victorian network operator AusNet with construction contractor CIMIC; while Australian gas pipeline operator APA Group is with French energy giant EDF in a separate consortium, three of the sources told Infralogic.

Spanish construction company Acciona has also lodged an EoI on its own, all four sources said.

EoIs for the 2 GW private public partnership (PPP) were open until mid-February. The competitive two-stage tender process will see a development partner appointed to design, build, finance, operate and maintain the transmission line and connection hub, according to the Victorian government’s website.

Consortia vying for the Gippsland project are similar to those that have formed to bid on the delayed 10 GW New England Renewable Energy Zone network operator tender in New South Wales, which is procured via a similar structure. A call for expressions of interest on that project are due in April or May.

The Gippsland transmission project was this week named a national renewable energy priority.

It is one of 24 transmission projects identified on the National Renewable Energy Priority List to receive coordinated support on regulatory planning and environmental approvals.

The Victorian government’s VicGrid in December last year called for EoIs to build the onshore grid links to connect new offshore wind farms to the National Electricity Market.

Procurement will include an incentivised target cost regime during delivery, with the private sector partnering with VicGrid for the transmission lines. An ITC structure allows for the private builder and operator and the government to jointly share the risk of cost blowouts as well as any gains from cost reductions.

EoIs called for each bid’s lead respondent to be a Transmission Network Service Provider (TNSP) with a partial or full equity provider and the capability to design and construct the transmission assets.

Construction is expected to begin late in 2027 and the new network operating by 2030.

VicGrid will continue engaging landholders in the study area to decide the transmission corridor and connection hub location, according to its website.

Representatives for CIMIC, AusNet, Acciona, Iberdrola, Capella Capital, John Holland, APA Group and EDF declined to comment.